NextGen advances in family businesses

"The generational transition lasted five years,' explains Colorificio S. Marco CEO Pietro Geremia, 'and it was a virtuous path, albeit a complex one: we have now also included independent directors in the board.' 'For some time we have had four co-creators with the same delegations,' says Nicola Pilotto of Centro Carni, 'but a few weeks ago we started a process to change the governance, although I must say that so far there have been no problems.

'Since January, we have for the first time a CEO from outside the family,' adds Chateaux D'ax General Manager Alessandro Colombo, 'and it was an important choice to provide balance and new points of view.

The numbers say that these paths are still in short order. But while it is true that only 13.3% of companies have completed the generational handover in the last ten years, another 43% are tackling it in some way, with informal or structured plans.

In family businesses, the Next-Gen still have small ownership shares (less than 25% in two-thirds of cases, only 11% in a controlling role), but families are already activating targeted pathways to encourage their future involvement. Among the 117 businesses surveyed, 58 have planned for young people to join family boards, 29 have set rules for access to the company, 26 have started entrepreneurial training pathways and 23 are reviewing and updating ownership, participation and succession agreements.

The outlook seems to be generally in favour of 'turnover', with entrepreneurial families outlining prospects of strong involvement for the new generation: in 80% of cases as owners, in 71% with governance and asset management roles, in 65% in top managerial positions and in 65% as promoters of new business initiatives.

the generational transition," comments Kpmg senior partner Mario Corti, "is a crucial challenge for the history of family businesses. However, the research data are comforting and make us think about this phase with confidence. The Next Gen is ready, thanks to a background of studies and solid professional experience, also at an international level, and a future-oriented, digital and entrepreneurial vision. The real crux remains how and when to start this transition, which is not only managerial, but also cultural and emotional. In addition to a lot of preparation for a gradual transition, we need to create a favourable context, made up of trust, training and support, where the current leadership knows how to evolve into a generative form: the leadership of those who understand that they must gradually create spaces for successors. It is a strategic challenge for the competitiveness of the country, which requires the conscious contribution of the entire ecosystem.

"It is expected," adds Giovanni Ronca, Head of Wealth Management Italy at Ubs group, "that in the next 20-25 years the global wealth transfer will reach approximately 83 trillion dollars. As a leading global manager we clearly see the historical phase of change and the context. It is interesting to note that the research on business ambassadors highlights how a good part of Italian entrepreneurial families involve the new generations in the choices and logics that guide the management of assets and investments: 80% imagine a significant involvement of the new generations in ownership, 71% in governance and asset management. Furthermore, 7 out of 10 members of the Next-Gen are aware of the amount and approach to investing their assets. The fact that young people are aware of the family's investment activities and have a good understanding of the investment mechanisms is for us at UBS, which we have been accompanying for se